Any collection of stocks is more clearly understood when subjected to yield-based (dog catcher) analysis, these Kiplinger world’s most reliable dividend stocks are perfect for the dogcatcher process. Here is the May 27 data for 89 dividend-paying stocks in the Kiplinger-documented collection. Missing now are 9 dearly departed former dividend payers felled by their board of directors’ reaction to COVID-19 stresses.
Now departed are: BAE Systems (OTCPK:BAESY), Bunzl (OTCPK:BZLFY), EssilorLuxottica (OTCPK:ESLOY), Fresenius Medical Care AG & Co. KGaA (FMS), Groupe Bruxelles Lambert (OTCPK:GBLBF), L’Oreal (OTCPK:LRLCY), Micro Focus International (MFGP), Flutter Entertainment PLC (OTCPK:PDYPY), Skandinaviska Enskilda Banken AB (OTCPK:SKVKY), and WPP PLC (WPP).
The post-Ides-of-March plunge in the stock market took an 11% toll on the 99 international aristocrats. The Scandinavian bank was the first of the ten to suspend dividend payouts. However, the drop in prices of 16 of the top 30 (listed by yield) most reliable dividend payers in the world has made the possibility of owning productive dividend shares from this collection more viable for first-time investors.
The following 16 currently live up to the ideal of having their annual dividends from a $1k investment exceed their single share price: XOM, ENB, PRU, BTI, CNQ, T, MEOH, ENGGY, BNS, BCE, BEN, IMBBY, SU, LEG, CMPGY, ASBFY.
In the past four weeks, these five recovered in price sufficiently to rise above the bargain basement: CM, MGA, NUE, ADM, RDEIY.
Actionable Conclusions (1-10): Analysts Estimated 15.57% To 34.92% Net Gains For Ten Top International Dividend Aristocrat Dogs To June 2021
Five of these ten top Kiplinger world’s most reliable dividend stocks by yield were among the top ten gainers for the coming year based on analyst 1-year target prices. (They are tinted gray in the chart below). Thus, the yield-based forecast for these incoming June dogs was graded by Wall St. Wizards as 50% accurate.
Projections were based on estimated dividends from $1000 invested in each of the highest yielding stocks and their aggregate one year analyst median target prices, as reported by YCharts. Note: one year target prices by lone analysts were not applied. Ten probable profit-generating trades projected to May 27, 2021 were:
British American Tobacco PLC (BTI) was projected to net $349.22, based on the median of target price estimates from four analysts, plus annual dividend, less broker fees. The Beta number showed this estimate subject to risk 6% less than the market as a whole.
Enbridge Inc. (ENB) was projected to net $255.43, based on dividends, plus the median of target price estimates from twenty-six analysts, less broker fees. The Beta number showed this estimate subject to risk 18% less than the market as a whole.
Canadian Imperial Bank Of Commerce (CM) was projected to net $217.91, based on dividends, plus a mean target price estimate from sixteen analysts, less broker fees. The Beta number showed this estimate subject to risk 2% over the market as a whole.
Cincinnati Financial Corp. (CINF) netted $195.55 based on the median of estimates from eight analysts, plus dividends. The Beta number showed this estimate subject to risk 45% less than the market as a whole.
Novartis AG (NVS) was projected to net $195.34, based on dividends, plus median target price estimates from six analysts, less broker fees. The Beta number showed this estimate subject to risk 59% under the market as a whole.
Federal Realty Investment (FRT) was projected to net $176.27 based on a median of target price estimates from twenty analysts, plus annual dividend, less broker fees. The Beta number showed this estimate subject to risk 6% less than the market as a whole.
Archer-Daniels-Midland (ADM) was projected to net $173.82, based on the median of target price estimates from thirteen analysts, plus annual dividend, less broker fees. The Beta number showed this estimate subject to risk 5% less than the market as a whole.
Canadian Natural Resources Ltd. (CNQ) was projected to net $161.89 based on the median of target estimates from twenty-five analysts, plus dividends, less broker fees. The Beta number showed this estimate subject to risk 27% less than the market as a whole.
Methanex Corp. (MEOH) was projected to net $160.02, based on a median of target price estimates from thirteen analysts, plus dividends, less broker fees. The Beta number showed this estimate subject to risk 124% greater than the market as a whole.
Consolidated Edison Inc. (ED) was projected to net $155.71 based on dividends, plus the median of target price estimates from nineteen brokers, less transaction fees. The Beta number showed this estimate subject to risk 77% less than the market as a whole.
The average net gain in dividend and price was estimated at 20.41% on $10k invested as $1k in each of these ten stocks. These gain estimates were subject to average risks 2% under the market as a whole.
The Dividend Dogs Rule
Stocks earned the “dog” moniker by exhibiting three traits: (1) paying reliable, repeating dividends, (2) their prices fell to where (3) yield (dividend/price) grew higher than their peers. Thus, the highest yielding stocks in any collection became known as “dogs.” More precisely, these are, in fact, best called, “underdogs”.
89 Kiplinger Most Reliable Dividend Stocks On Earth By June Target Gains
89 Kiplinger Most Reliable Dividend Stocks On Earth By June Yield
Actionable Conclusions (11-20): 10 Top International Dividend Aristocrats By Yield
Top ten International Dividend Aristocrats selected 5/27/20 by yield represented six of eleven Morningstar sectors. The top slots went to two of three in the energy sector: Exxon Mobil Corp. (XOM) , Enbridge Inc. , while a third member of this took the fifth slot, Canadian Natural Resources Ltd. .
In third place was the first of three financial services representatives, Prudential Financial Inc. (NYSE:PRU) . Two more from financial services emerged in eighth and tenth places by yield, Canadian Imperial Bank of Commerce , and Bank of Nova Scotia (BNS) .
The lone consumer defensive representative placed fourth, British American Tobacco PLC . Thereafter, the lone communications services representative placed sixth, AT&T Inc. (T) , and a lone basic materials sector representative placed seventh, Methanex Corp. .
Finally, one from utilities dropped into ninth place, Enagas SA (OTCPK:ENGGY) , to complete the pending International Aristocrats top ten by yield for June.
Actionable Conclusions: (21-30) Top Ten Kiplinger Most Reliable Dividend Dogs Showed 10.63%-29.23 June Price Upsides While (31) Three Lowly Downsiders Emerged
To quantify top dog rankings, analyst mean price target estimates provided a “market sentiment” gauge of upside potential. Added to the simple high-yield metrics, analyst median target price estimates became another tool to dig out bargains.
Analysts Forecast A 10.19% Disadvantage For 5 Lowest Priced of 10 Highest Yield, Kiplinger Most Reliable International Dividend Aristocrats To June 2021
Ten top Kiplinger most reliable dividend dogs were culled by yield for this update. Yield (dividend / price) results provided by YCharts did the ranking.
As noted above, top ten Kiplinger most reliable dividend dogs screened 5/27/20 showing the highest dividend yields represented six of eleven in the Morningstar sector scheme.
Actionable Conclusions: Analysts Predicted 5 Lowest-Priced Of The Top Ten Highest-Yield Kiplinger World’s Most Reliable Dividend Dogs (32) Delivering 15.55% Vs. (33) 17.21% Net Gains by All Ten Come June 2021
$5,000 invested as $1k in each of the five lowest-priced stocks in the top ten Kiplinger most reliable dividend kennel by yield were predicted by analyst 1-year targets to deliver 10.19% LESS gain than $5,000 invested as $.5k in all ten. The sixth lowest-priced selection, British American Tobacco PLC, was projected to deliver the best net gain of 34.92%.
The five lowest-priced top-yield Kiplinger most reliable international dividend aristocrat dogs as of May 27 were: Enagas SA; Methanex Corp.; Canadian Natural Resources Ltd.; AT&T Inc.; Enbridge Inc., with prices ranging from $11.56 to $32.16.
Five higher-priced Kiplinger world’s most reliable international dividend aristocrat dogs as of May 27 were: British American Tobacco PLC; Bank of Nova Scotia; Exxon Mobil Corp.; Prudential Financial Inc.; Canadian Imperial Bank of Commerce, whose prices ranged from $40.47 to $66.42.
The distinction between five low-priced dividend dogs and the general field of ten reflected Michael B. O’Higgins’ “basic method” for beating the Dow. The scale of projected gains based on analyst targets added a unique element of “market sentiment” gauging upside potential. It provided a here-and-now equivalent of waiting a year to find out what might happen in the market. Caution is advised, since analysts are historically only 20% to 80% accurate on the direction of change and just 0% to 20% accurate on the degree of change.
The net gain/loss estimates above did not factor in any foreign or domestic tax problems resulting from distributions. Consult your tax advisor regarding the source and consequences of “dividends” from any investment.
Stocks listed above were suggested only as possible reference points for your International Aristocrat stock purchase or sale research process. These were not recommendations.
Disclaimer: This article is for informational and educational purposes only and should not be construed to constitute investment advice. Nothing contained herein shall constitute a solicitation, recommendation or endorsement to buy or sell any security. Prices and returns on equities in this article except as noted are listed without consideration of fees, commissions, taxes, penalties, or interest payable due to purchasing, holding, or selling same.
Graphs and charts were compiled by Rydlun & Co., LLC from data derived from www.indexarb.com; YCharts.com; finance.yahoo.com; analyst mean target price by YCharts. Dog photo: pinterest.com
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Disclosure: I am/we are long T. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.